Wednesday, July 20, 2011
Eurozone debt crisis could prove 'very costly' for the world, warns IMF
Europe's policymakers must press on with deeper economic integration to "stay the course", the global lender said ahead of Thursday's crunch summit of eurozone leaders.
"To put the crisis behind, we need more Europe, not less. And we need it now," said Antonio Borges, director of the IMF's European department, as it released its assessment of the turmoil.
On Tuesday night, diplomats in Brussels were warning of "bedlam" unless a deal is "more or less" sealed on Thursday.
The crisis around Greek debt now poses "serious risks" that it will infect the region's core powerhouse economies, such as Greece and France, even if officials pursue a strategy aimed at avoiding a default by Athens, the IMF said.
The fears about weaker member states' finances have already sent their borrowing costs sky-high, necessitating bail-outs for Greece, Ireland and Portugal.
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